Yirendai (NYSE:YRD) & iQIYI (NASDAQ:IQ) Head-To-Head Survey

Yirendai (NYSE:YRD) and iQIYI (NASDAQ:IQ) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Yirendai and iQIYI, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yirendai	1	0	0	0	1.00
iQIYI	2	1	2	0	2.00

iQIYI has a consensus price target of $2.55, suggesting a potential upside of 154.92%. Given iQIYI’s stronger consensus rating and higher probable upside, analysts plainly believe iQIYI is more favorable than Yirendai.

Profitability

This table compares Yirendai and iQIYI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yirendai	-14.35%	-7.42%	-5.06%
iQIYI	-2.61%	-4.72%	-1.36%

Valuation and Earnings

This table compares Yirendai and iQIYI”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yirendai	$817.84 million	0.12	$7.80 million	$0.03	36.50
iQIYI	$3.80 billion	0.25	-$29.50 million	($0.10)	-9.99

Yirendai has higher earnings, but lower revenue than iQIYI. iQIYI is trading at a lower price-to-earnings ratio than Yirendai, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

2.0% of Yirendai shares are owned by institutional investors. Comparatively, 52.7% of iQIYI shares are owned by institutional investors. 42.2% of Yirendai shares are owned by insiders. Comparatively, 57.8% of iQIYI shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

Yirendai has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, iQIYI has a beta of 0.19, indicating that its share price is 81% less volatile than the S&P 500.

Summary

iQIYI beats Yirendai on 10 of the 14 factors compared between the two stocks.

About Yirendai

Yiren Digital Ltd. provides financial services through an AI-powered platform in China. Its platform provides a suite of financial and lifestyle services. The company offers financial services, which provides a portfolio of loan products to borrowers; insurance brokerage services; and consumption and lifestyle services, including non-financial products and services to meet various consumer needs. It supports clients at various growth stages, addressing financing needs arising from consumption and production activities, and augmenting the well-being and security of individuals, families, and businesses. The company was formerly known as Yirendai Ltd. and changed its name to Yiren Digital Ltd. in September 2019. Yiren Digital Ltd. was founded in 2012 and is based in Beijing, the People's Republic of China. Yiren Digital Ltd. operates as a subsidiary of CreditEase Holdings (Cayman) Limited.

About iQIYI

iQIYI, Inc., together with its subsidiaries, provides online entertainment video services in the People's Republic of China. It offers various products and services, including online video, online games, online literature, animations, and other products. The company operates a platform that provides a collection of internet video content, such as professionally produced content licensed from professional content providers and self-produced content. It also offers membership, online advertising, content distribution, and live broadcasting services. In addition, the company operates iQIYI Show, a live broadcasting platform that enables users to follow their favorite hosts and shows in real time through live broadcasting; and iQIYI Lite that offers an easy and quick access to the personalized videos based on their user preferences. Further, it is involved in the talent agency and IP licensing activities, as well as engages in developing a video community app. The company was formerly known as Qiyi.com, Inc. and changed its name to iQIYI, Inc. in November 2017. iQIYI, Inc. was incorporated in 2009 and is headquartered in Beijing, China. iQIYI, Inc. is a subsidiary of Baidu, Inc.